Recent news features have shown that the mega rich have also fallen victim to the credit crunch, with some of the UKs richest seeing their worth fall by tens of millions, and now it seems that some highflying Premiership football clubs have also fallen victim to mounting debts.

It is hardly surprising when many consider just how much some football players are paid alongside many other expenses it is hardly surprising that clubs are falling into the red.  Currently clubs are only punished if they fall into administration usually by being docked points but now there are calls for clubs, which are being mismanaged and falling into debt.

West Brom who have recently been relegated have spoken out in support of the proposed measures to keep a tight control on clubs spending recklessly. Richard Scudamore, who is the chief executive of the Premier League, has called for action to be taken against clubs who fail to balance the books and slip into the red.

Football clubs face struggles off pitch

West Brom has remained prudent during their Premier League campaign; with the Baggies running a rolling three-year business plan, designed to insure a financially stable future for the club. Ensuring they have not over spent on transfer fees and wages, now means that they do not initially have to offload all their star players just to stay afloat in the Championship.

Currently any club qualifying for European competition, needs to obtain a license, which is only granted if the club can show that they are in a financial stable position. This is aimed at ensuring theteams survival for at least two years. West Ham, which are owned by troubled Icelandic business man Bjorgolfur Gudmundsson, where recently denied this license and are currently appealing, against the decision.

The Premier League is now considering if it should adopt a similar approach, implying that any club which slips into debt may be forced to sell players or banned from trading in the transfer market.

Mark Jenkins, the financial director of the Albions, believes that the Premier League's proposed measures justify the clubs prudence. He said: "You have to show that as a standalone business you can continue trading. The Premier League wants to vote these in although they haven’t gone as far as saying that they won’t issue a Premier League license, although they may take certain actions. It's at the stage where the advisory group are talking about it."

"The feeling is that, they will reserve power to the board that if a club can't guarantee viability until the end of season two, then they won’t be allowed to sign players. It's only common business sense and something this club has done."

Currently any Premiership football club that falls into administration, will suffer a nine point deduction. However, the spending which would have led the club into administration, could very likely, help to bring in the caliber of players, which could still keep the club in the top flight.

So currently there seems to be little that is stopping clubs from spending recklessly and falling into debt, meaning that the powers that be in the Premiere League, may have to take action before things really get out of control.